Title: Understanding RA 7832: Sections 10-17 Explained

By CHAT

[Opening shot of a presenter standing in front of a screen displaying the title "Understanding RA
7832: Sections 10-17 Explained"]

Presenter: Hello, and welcome. Today, we delve into the intricacies of Republic Act 7832, also known
as the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994. Specifically,
we'll be focusing on sections 10 through 17, which play a crucial role in ensuring the integrity of our
electrical infrastructure. Let's begin.

[Transition to a slide displaying Section 10 of RA 7832]

Presenter: Section 10 of RA 7832 deals with penalties for offenders. It states that anyone found guilty
of committing theft of electric power transmission lines or materials shall be punished with
imprisonment and/or fines. This section aims to deter individuals from engaging in such illegal
activities, thus safeguarding our electrical infrastructure.

[Transition to a slide displaying Section 11 of RA 7832]

Presenter: Moving on to Section 11, this section outlines the penalties for the unauthorized use of
jumper connections. Jumper connections are unauthorized connections made to power lines to steal
electricity. Those found guilty of such acts face imprisonment and/or fines. By imposing strict
penalties, this section aims to discourage individuals from engaging in electricity theft through
jumper connections.

[Transition to a slide displaying Section 12 of RA 7832]

Presenter: Section 12 focuses on the penalties for tampering with electric meters. Electric meters are
crucial for accurately measuring and billing electricity consumption. Tampering with these meters
undermines the integrity of the billing system. Therefore, Section 12 imposes severe penalties on
individuals involved in tampering with electric meters, including imprisonment and fines.

[Transition to a slide displaying Section 13 of RA 7832]

Presenter: Now, let's discuss Section 13, which addresses the penalties for unauthorized connections.
Unauthorized connections refer to any connection made to the electrical system without proper
authorization. Such connections pose serious safety risks and can lead to electrical accidents. Section
13 aims to deter individuals from making unauthorized connections by imposing imprisonment and
fines as penalties.

[Transition to a slide displaying Section 14 of RA 7832]

Presenter: Section 14 deals with the penalties for the unauthorized opening, breaking, or destruction
of seals, locks, or meters. Seals, locks, and meters are essential components of the electrical system,
ensuring its security and integrity. Any unauthorized tampering with these components is considered
a serious offense under Section 14, punishable by imprisonment and fines.

[Transition to a slide displaying Section 15 of RA 7832]

Presenter: Section 15 addresses the liability of persons involved in the violation of RA 7832. This
section holds individuals, including owners, lessees, administrators, or operators of premises where
violations occur, accountable for such violations. By holding responsible parties liable, Section 15
aims to ensure accountability and discourage complicity in illegal activities related to electricity theft.

[Transition to a slide displaying Section 16 of RA 7832]

Presenter: Section 16 pertains to the confiscation and forfeiture of electric power transmission lines
or materials used in committing violations of RA 7832. Confiscation and forfeiture serve as deterrents
against future offenses and help recover losses incurred due to electricity theft. This section
reinforces the government's commitment to combating electricity theft and safeguarding our
electrical infrastructure.

[Transition to a slide displaying Section 17 of RA 7832]

Presenter: Finally, Section 17 empowers the Department of Energy (DOE) to promulgate rules and
regulations necessary for the effective implementation of RA 7832. These rules and regulations
provide guidance on the enforcement and administration of the law, ensuring its proper execution.
Through Section 17, the DOE plays a crucial role in enforcing and upholding the provisions of RA
7832.

[Closing shot of the presenter]

Presenter: In conclusion, Sections 10 through 17 of Republic Act 7832 play a vital role in combatting
electricity theft and safeguarding our electrical infrastructure. By imposing strict penalties, holding
responsible parties accountable, and empowering regulatory agencies, RA 7832 contributes to the
integrity and reliability of our electrical system. Thank you for watching.

[End of presentation]

Title: Understanding Your Rights: Disconnection of Electricity (RA 7832

Sections 10-17)

Intro (30 seconds)

Hi everyone, and welcome! Today, we're talking about your rights regarding
electricity disconnection in the Philippines. This is governed by Republic Act No.
7832, also known as the "Electricity Sector Reform Act of 1994." Specifically, we'll
focus on Sections 10 to 17, which deal with penalties and limitations on
disconnection.

Understanding Penalties (1 minute)

Section 4 of RA 7832 outlines various acts that can lead to disconnection. However,
Sections 10 and 11 clarify additional penalties. If you commit multiple offenses, you'll
face a harsher penalty based on the highest degree of violation.

Increased Penalties for Employees (30 seconds)

Section 11 emphasizes accountability for utility personnel. If an officer or employee

is involved in a disconnection violation, they face a penalty one degree higher than a
regular customer. This serves as a deterrent against any misuse of authority.

Limits on Disconnection (1 minute)

Now, let's talk about your rights. Section 10 restricts courts from issuing injunctions
or restraining orders against electric companies disconnecting your service. This is
to ensure they can enforce payment regulations. However, there's an exception!
Disconnection with "Bad Faith" (45 seconds)

Section 17 allows a court to intervene if there's "prima facie evidence" that the
disconnection was done with "evident bad faith" or "grave abuse of authority." This
means the company disconnected you unfairly, without following proper procedures
or due process.

Conclusion (30 seconds)

Understanding RA 7832 is crucial for both consumers and electric companies. It

ensures fair treatment for everyone. While companies have the right to enforce
payment, they must do so following the law. If you believe your disconnection was
unlawful, gather evidence and consult a lawyer to explore your options under Section
17.

Outro (15 seconds)

Thanks for joining this short explainer! Remember, knowledge empowers you. Stay
informed about your rights!

Republic of the Philippines

Congress of the Philippines
Metro Manila

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth

day of July, nineteen hundred and ninety-four.

[REPUBLIC ACT NO. 7832]

AN ACT PENALIZING THE PILFERAGE OF ELECTRICITY AND THEFT OF

ELECTRIC POWER TRANSMISSION LINES/MATERIALS, RATIONALIZING
SYSTEM LOSSES BY PHASING OUT PILFERAGE LOSSES AS A COMPONENT
THEREOF, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Short Title. – This Act shall be referred to as the “Anti-electricity and Electric
Transmission Lines/Materials Pilferage Act of 1994.”
SEC. 2. Illegal Use of Electricity. – It is hereby declared unlawful for any person, whether
natural or juridical, public or private, to:

(a) Tap, make or cause to be made any connection with overhead lines, service drops, or
other electric service wires, without previous authority or consent of the private electric
utility or rural electric cooperative concerned;

(b) Tap, make or cause to be made any connection to the existing electric service facilities of
any duly registered consumer without the latter’s or the electric utility’s consent or authority;

(c) Tamper, install or use a tampered electrical meter, jumper, current reversing transformer,
shorting or shunting wire, loop connection or any other device which interferes with the
proper or accurate registry or metering of electric-current or otherwise results in its diversion
in a manner whereby electricity is stolen or wasted;

(d) Damage or destroy an electric meter, equipment, wire or conduit or allow any of them to
be so damaged or destroyed as r to interfere with the proper or accurate metering of electric t
current; and

(e) Knowingly use or receive the direct benefit of electric service obtained through any of the
acts mentioned in subsections (a), (b), (c), and (d) above.

SEC. 3. Theft of Electric Power Transmission Linen and Materials. – (a) It is hereby declared
unlawful for any person to:

(1) Cut, saw, slice, separate, split, severe, smelt, or remove any electric power transmission
line/material or meter from a i tower, pole, any other installation or place of installation or
any other place or site where it may be rightfully or lawfully stored, deposited, kept, stocked,
inventoried, situated or located, without the consent of the owner, whether or not the act is
done for profit or gain;

(2) Take, carry away or remove or transfer, with or without the use of a motor vehicle or
other means of conveyance, any electric power transmission line/material or meter from a
tower, pole, any other installation or place of installation, or any place or site where it may be
rightfully or lawfully stored, deposited, kept, stocked, inventoried, situated or located,
without the consent of i the owner, whether or not the act is done for profit or gain;

(3) Store, possess or otherwise keep in his premises, custody or control, any electric power
transmission line/material or meter without the consent of the owner, whether or not the act is
done for profit or gain; and

(4) Load, carry, ship or move from one place to another, whether by land, air or sea, any
electrical power transmission line/material, whether or not the act is done for profit or gain,
without first securing a clearance/permit for the said purpose from its owner or the National
Power Corporation (NPC) or its regional office concerned, as the case maybe.

(b) For purposes of this section, “electrical power transmission line/material” refers to
electric power transmission steel towers, woodpoles, cables, wires, insulators, line hardwares,
electrical conductors and other related items with a minimum voltage of sixty-nine kilovolts
(69 kv), such as the following:
(1) Steel transmission line towers made of galvanized steel angular members and plates or
creosoted and/or tannelized woodpoles/concrete poles and designed to carry and support the
conductors;

(2) Aluminum conductor steel reinforced (ACSR) in excess of one hundred (100) MCM;

(3) Overhead ground wires made of 7 strands of galvanized steel wires, 3.08 millimeters in
diameter and designed to protect the electrical conductors from lightning strikes;

(4) Insulators made of porcelain or glass shell and designed to insulate the electrical
conductors from steel towers or woodpoles; and

(5) Various transmission line hardwares and materials made of aluminum alloy or malleable
steel and designed to interconnect the towers, conductors, ground wires, and insulators
mentioned in subparagraphs (1), (2), (3), and (4) above for the safe and reliable operation of
the transmission lines.

SEC. 4. Prima Facie Evidence. – (a) The presence any of the following circumstances shall
constitute prima facie evidence of illegal use of electricity, as defined in this Act, by the

person benefitted thereby, and shall be the basis for: (1) the immediate disconnection by the
electric utility to such person after due notice, (2) the holding of a preliminary investigation
by the prosecutor and the subsequent filing in court of the pertinent information, and (3) the
lifting of any temporary restraining order or injunction which may have been issued against a
private electric utility or rural electric cooperative:

(i) The presence of a bored hole on the glass cover of the electric meter, or at the back or any
other part of said meter;

(ii) The presence inside the electric meter of salt, sugar and other elements that could result in
the inaccurate registration of the meter’s internal parts to prevent its accurate registration of
consumption of electricity;

(iii) The existence of any wiring connection which affects the normal operation or
registration of the electric meter;

(iv) The presence of a tampered, broken, or fake seal on the meter, or mutilated, altered, or
tampered meter recording chart or graph, or computerized chart, graph or log;

(v) The presence in any part of the building or its premises which is subject to the control of
the consumer or on the electric meter, of a current reversing transformer, jumper, shorting
and/or shunting wire, and/or loop connection or any other similar device;

(vi) The mutilation, alteration, reconnection, disconnection, bypassing or tampering of

instruments, transformers, and accessories;

(vii) The destruction of, or attempt to destroy, any integral accessory of the metering device
box which encases an electric meter, or its metering accessories; and
(viii) The acceptance of money and/or other valuable consideration by any officer or
employee of the electric utility concerned or the making of such an offer to any such officer
or employee for not reporting the presence of any of the circumstances enumerated in
subparagraphs (i), (ii), (iii), (iv), (v), (vi), or (vii) hereof provided, however, That the
discovery of any of the foregoing circumstances, in order to constitute prima facie evidence,
must be personally witnessed and attested to by an officer of the law or a duly authorized
representative of the Energy Regulatory Board (ERB).

(b) The possession, control or custody of electric power transmission line/material by any
person, natural or juridical, not engaged in the transformation, transmission or distribution of
electric power, or in the manufacture of such electric power transmission line/material shall
be prima facie evidence that such line/material is the fruit of the offense defined in Section 3
hereof and therefore such line/material may be confiscated from the person in possession,
control or custody thereof.

SEC. 5. Incentives. – An incentive scheme by way of a monetary reward in the minimum

amount of Five thousand pesos (P5,000) shall be given to any person who shall report to the
NPC or police authorities any act which may constitute a violation of Section 3 hereof. The
Department of Energy (DOE), in consultation with the NPC, shall issue the necessary
guidelines for the proper implementation of this incentive scheme within thirty (30) days
from the effectivity of this Act.

SEC. 6. Disconnection of Electric Service. – The private electric utility or rural electric
cooperative concerned shall have the right and authority to disconnect immediately the
electric service after serving a written notice or warning to that effect, without the need of a
court or administrative order, and deny restoration of the same, when the owner of the house
or establishment concerned or someone acting in his behalf shall have been caught en
flagrante delicto doing any of the acts enumerated in Section 4(a) hereof, or when any of the
circumstances so enumerated shall have been discovered for the second time: Provided, That
in the second case, a written notice or warning shall have been issued upon the first
discovery: Provided, further, That the electric service shall not be immediately disconnected
or shall be immediately restored upon the deposit of the amount representing the differential
billing by the person denied the service, with the private electric utility or rural electric
cooperative concerned or with the competent court, as the case may be: Provided,
furthermore, That if the court finds that illegal use of electricity has not been committed by
the same person, the amount deposited shall be credited against future billing with legal
interest thereon chargeable against the private utility or rural electric cooperative, and the
utility or cooperative shall be made to immediately pay such person double the value of the
payment or deposit with legal interest, which amount shall likewise be creditable against
immediate future billings, without prejudice to any criminal, civil or administrative action
that such person may be entitled to file under existing laws, rules and regulations: Provided,
finally, That if the court finds the same person guilty of such illegal use of electricity, he
shall, upon final judgment, be made to pay the electric utility or rural electric cooperative
concerned double the value of the estimated electricity illegally used which is referred to in
this section as differential billing.

For purposes of this Act, “differential billing” shall refer to the amount to be charged to the
person concerned for the unbilled electricity illegally consumed by him as determined
through the use of methodologies which utilize, among others, as basis for determining the
amount of monthly electric consumption in kilowatt-hours to be billed, either: (a) the highest
recorded monthly consumption within the five-year billing period preceding the time of the
discovery, (b) the estimated monthly consumption as per the report of load inspection
conducted during the time of discovery, (c) the higher consumption between the average
consumptions before or after the highest drastic drop in consumption within the five-year
billing period preceding the discovery, (d) the highest recorded monthly consumption within
four (4) months after the time of discovery, or (e) the result of the ERB test during the time of
discovery and, as basis for determining the period to be recovered by the differential billing,
either: (1) the time when the electric service of the person concerned recorded an abrupt or
abnormal drop in consumption, or (2) when there was a change in his service connection such
as a change of meter, change of seal or reconnection, or in the absence thereof, a maximum of
sixty (60) billing months, up to the time of discovery: Provided, however, That such period
shall, in no case, be less than one (1) year preceding the date of discovery of the illegal use of
electricity.

SEC. 7. Penalties. – (a) Violation of Section 2 – The penalty of prision mayor or a fine
ranging from Ten thousand pesos (P 10,000) to Twenty thousand pesos (P 20,000) or both, at
the discretion of the court, shall be imposed on any person found guilty of violating Section 2
hereof.

(b) Violation of Section 3 – The penalty of reclusion temporal or a fine ranging from Fifty
thousand pesos (P 50,000) to One hundred thousand pesos (P 100,000) or both, at the
discretion of the court, shall be imposed on any person found guilty of violating Section 3
hereof.

(c) Provision common to violations of Section 2 and Section 3 hereof – If the offense is
committed by, or in connivance with, an officer or employee of the power company, private
electric utility or rural electric cooperative concerned, such officer or employee shall, upon
conviction, be punished with a penalty one (1) degree higher than the penalty provided
herein, and forthwith be dismissed and perpetually disqualified from employment in any
public or private utility or service company and from holding any public office.

If, in committing any of the acts enumerated in Section 4 hereof, any of the other acts as
enumerated is also committed, then the penalty next higher in degree as provided herein shall
be imposed.

If the offense is committed by, or in connivance with an officer or employee of the electric
utility concerned, such officer or employee shall, upon conviction, be punished with a penalty
one (1) degree higher than the penalty provided herein, and forthwith be dismissed and
perpetually disqualified from employment in any public or private utility or service company.
Likewise, the electric utility concerned which shall have knowingly permitted or having
knowledge of its commission shall have failed to prevent the same, or was otherwise guilty of
negligence in connection with the commission thereof, shall be made to pay a fine not
exceeding triple the amount of the “differential billing” subject to the discretion of the courts.

If the violation is committed by a partnership, firm, corporation, association or any other

legal entity, including a government-owned or-controlled corporation, the. penalty shall be
imposed on the president, manager and each of the officers thereof who shall have knowingly
permitted, failed to prevent or was otherwise responsible for the commission of the offense.
SEC. 8. Authority to Impose Violation of Contract Surcharges. – A private electric utility or
rural electric cooperative may impose surcharges, in addition to the value of the electricity
pilfered, on the bills of any consumer apprehended for tampering with his electric
meter/metering facility installed on his premises, as well as other violations of contract like
direct connection, use of jumper, and other means of illicit usage of electricity found installed
in the premises of the consumer. The surcharge for the violation of contract shall be collected
from and paid by the consumer concerned as follows:

(a) First apprehension – Twenty-five percent (25%) of the current bill as surcharge;

(b) Second apprehension – Fifty percent (50%) of the current bill as surcharge; and

(c) Third and subsequent Apprehensions – One hundred percent (100%) of the current bills as
surcharge.

The private electric utility or rural electric cooperative is authorized to discontinue the
electric service in case the consumer is in arrears in the payment of the above imposed
surcharges.

The term “apprehension” as used herein shall be understood to mean the discovery of the
presence of any of the circumstances enumerated in Section 4 hereof in the establishment or
outfit of the consumer concerned.

SEC. 9. Restriction on the Issuance of Restraining Orders or Writs of Injunction. – No writ of

injunction or restraining order shall be issued by any court against any private electric utility
or rural electric cooperative exercising the right and authority to disconnect electric service as
provided in this Act, unless there is prima facie evidence that the disconnection was made
with evident bad faith or grave abuse of authority.

If, notwithstanding the provisions of this section, a court issues an injunction or restraining
order, such injunction or restraining order shall be effective only upon the filing of a bond
with the court which shall be in the form of cash or cashier’s check equivalent to the
“differential billing,” penalties and other charges, or to the total value of the subject matter of
the action: Provided, however, That such injunction or restraining order shall automatically
be refused or, if granted, shall be dissolved upon filing by the public utility of a counterbond
similar in form and amount as that above required: Provided, finally, That whenever such
injunction is granted, the court issuing it shall, within ten (10) days from its issuance, submit
a report to the Supreme Court setting forth in detail the grounds or reasons for its order.

0000000000000

SEC. 10. Rationalization of System Losses by Phasing out Pilferage Losses as a Component
Thereof. – There is hereby established a cap on the recoverable rate of system losses as
follows:

(a) For private electric utilities:

(i) Fourteen and a half percent (14 1/2%) at the end of the first year following the effectivity
of this Act;
(ii) Thirteen and one-fourth percent (13 1/4%) at the end of the second year following the
effectivity of this Act;

(iii) Eleven and three-fourths percent (11 3/4%) at the end of the third year following the
effectivity of this Act; and

(iv) Nine and a half percent (9 1/2%) at the end of the fourth year following the effectivity of
this Act.

Provided, That the ERB is hereby authorized to determine at the end of the fourth year
following the effectivity of this Act, and as often as necessary taking into account the
viability of private electric utilities and the interest of the consumers, whether the caps herein
or theretofore established shall be reduced further which shall, in no case, be lower than nine
percent (9%) and accordingly fix the date of the effectivity of the new caps: Provided,
further, That in the calculation of the system loss, power sold by the NPC or any other entity
that supplies power directly to a consumer and not through the distribution system of the
private electric utility shall not be counted even if the billing for the said power used is
through the private electric utility.

The term “power sold by NPC or any other entity that supplies power directly to a consumer”
as used in the preceding paragraph shall for purposes of this section be deemed to be a sale
directly to the consumer if: (1) the point of metering by the NPC or any other utility is less
than one thousand (1,000) meters from the consumer, or (2) the consumer’s electric
consumption is three percent (3%) or more of the total load consumption of all the customers
of the utility, or (3) there is no other consumer connected to the distribution line of the utility
which connects to the NPC or any other utility point of metering to the consumer meter.

(b) For rural electric cooperatives:

(i) Twenty-two percent (22%) at the end of the first year following the effectivity of this Act;

(ii) Twenty percent (20%) at the end of the second year following the effectivity of this Act;

(iii) Eighteen percent (18%,) at the end of the third year following the effectivity of this Act;

(iv) Sixteen percent (16%) at the end of the fourth year following the effectivity of this Act;
and

(v) Fourteen percent (14%) at the end of the fifth year following the effectivity of this Act.

Provided, That the ERB is hereby authorized to determine at the end of the fifth year
following the effectivity of this Act, and as often as is necessary, taking into account the
viability of rural electric cooperatives and the interest of the consumers, whether the caps
herein or theretofore established shall be reduced further which shall, in no case, be lower
than nine percent (9%) and accordingly fix the date of the effectivity of the new caps.

Provided, finally, That in any case nothing in this Act shall impair the authority of the ERB to
reduce or phase out technical or design losses as a component of system losses.
SEC. 11. Area of Coverage. – The caps provided in Section 10 of this Act shall apply only to
the area of coverage of private electric utilities and rural electric cooperatives as of the date of
the effectivity of this Act.

The permissible levels of recovery for system losses in areas of coverage that may be added
on by either a private electric utility or a electric cooperative shall be determined by the ERB.

SEC. 12. Recovery of Pilferage Losses. – Any private electric utility or rural electric
cooperative which recovers any amount of pilferage losses shall, within thirty (30) days from
said recovery, report in writing and under oath to the ERB: (a) the fact of recovery, (b) the
date thereof, (c) the name of the consumer concerned, (d) the amount recovered, (e) the
amount of pilferage loss claimed, (f) the explanation for the failure to recover the whole
amount claimed, and (g) such other particulars as may be required by the ERB. If there is a
case pending in court for the recovery of a pilferage loss, no private electric utility or rural
electric cooperative shall accept payment from the consumer unless so provided in a
compromise agreement duly executed by the parties and approved by the court.

SEC. 13. Information Dissemination. – The private electric utilities, the rural electric
cooperatives, the NPC, and the National Electrification Administration (NEA) shall, in
cooperation with each other, undertake a vigorous campaign to inform their consumers of the
provisions of this Act especially Sections 2, 3, 4, 5, 6, 7, and 8 hereof, within sixty (60) days
from the effectivity of this Act and at least once a year thereafter, and to incorporate a faithful
condensation of said provisions in the contracts with new consumers.

SEC. 14. Rules and Regulations. – The ERB shall, within thirty (30) working days after the
conduct of due hearings which must commence within thirty(30) working days upon the
effectivity of this Act, issue the rules and regulations as may be necessary to ensure the
efficient and effective implementation of the provisions of this Act, to include but not limited
to, the development of methodologies for computing the amount of electricity illegally used
and the amount of payment or deposit contemplated in Section 7 hereof, as a result of the
presence of the prima facie evidence discovered.

The ERB shall, within the same period, also issue rules and regulations on the submission of
the reports required under Section 12 hereof and the procedure for the distribution to or
crediting of consumers for recovered pilferage losses.

SEC. 15. Separability Clause. – Any portion or provision of this Act which may be declared
unconstitutional or invalid shall not have the effect of nullifying other portions or provisions
hereof.

SEC. 16. Repealing Clause. – The provisions in Presidential Decree No. 401, as amended by
Batas Pambansa Big. 876, penalizing the unauthorized installation of electrical connections,
tampering and/or knowing use of tampered electrical meters or other devices, and the theft of
electricity are hereby expressly repealed. All other laws, ordinances, rules, regulations, and
other issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or
modified accordingly.

SEC. 17. Effectivity Clause. – This Act shall take effect thirty (30) days after its publication
in the Official Gazette or in any two (2) national newspapers of general circulation.
Approved,

(Sgd.) EDGARDO J. ANGARA

President of the Senate

This Act which is a consolidation of House Bill No. 11364 and Senate Bill No. 1237 was
finally passed by the House of Representatives and the Senate on November 29, 1994 and
December 6, 1994, respectively.

(Sgd.) EDGARDO E. TUMANGAN

Secretary of the Senate

Approved:

DEC 08 1994

(Sgd.) FIDEL V. RAMOS

President of the Philippines

Source: Presidential Management Staff